More and more retirees are moving abroad.
So that there is no financial fiasco under the palm trees, there are a few things to consider: from the reporting obligation to account fees and taxes.
Munich - summer, sun, retirement: more and more Germans are spending their retirement where others go on vacation.
According to current statistics from the German Pension Insurance, the number of German pensioners abroad rose from around 229,000 in 2015 to 248,000 last year.
Where are retired Germans drawn to?
Most foreign pensions (more than 27,000) are transferred to Austria, almost as many to Switzerland and around 23,000 to the USA.
The rest is spread out colorfully across all corners of the world, wherever it's beautiful - or where the roots are.
However, if you want to emigrate in old age, there are a few things to consider.
Pension abroad: new country, new account?
The pension can either be transferred to an account at a bank abroad or to one in Germany while you are abroad.
The pension insurance does not need more than the international bank code BIC and the international account number IBAN to pay the pension.
"In principle, we also transfer money to any foreign bank," explains a spokesman for the German pension insurance in the
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He advises, however, to find out about the conditions in advance, because additional fees such as bank charges and exchange rate losses may apply when transferring abroad.
Foreign pension: threatened with premium cuts after moving?
As a rule, retirees do not have to fear a reduction in their pension when moving abroad.
Nonetheless, interested parties should clarify their claims with their pension insurance provider at an early stage, seek advice - and, above all, re-register.
"If there is no current postal address and we cannot determine one, we will temporarily stop the pension payments," explains the spokesman.
Pension abroad: Certainly not a tax haven
Pensioners who live abroad permanently are considered by the tax office as “subject to limited tax liability.
So you have to continue to pay pension tax - and have a decisive disadvantage compared to pensioners who spend their retirement in Germany.
The basic tax-free allowance does not apply abroad (9744 euros per year).
The pension is taxed more expensively.
Other tax breaks such as spouse splitting or the crediting of medical expenses cannot be used abroad, special expenses and extraordinary burdens cannot be deducted to reduce taxes.
Foreign pension: what about health insurance?
If you permanently move your place of residence to another EU country, you will remain a member of the statutory health insurance in Germany.
In their new home, pensioners will then not have their own entitlement to benefits, not even because of a secondary job there.
But: People with statutory health insurance can register with a health insurance provider at their new place of residence in the European Economic Area.
There they get the benefits in kind that are customary for locals.
Riester pension abroad: a delicate matter
Retirees also have to keep an eye on their private pension scheme when moving abroad.
Above all, the country plays an immense role when one “riest”.
If the destination is outside the EU, the damage can be considerable: If the place of residence is relocated to non-European countries, the allowances received, for example through a Riester pension, can be reclaimed in full.
In view of these points, you should clarify all pension issues with the institutions involved at an early stage before moving abroad, so that the end of your life under palm trees does not turn into a financial fiasco.
